The blast targeted the gates of the Eidgah Mosque in the Afghan capital, where a funeral service was being held for the mother of Taliban spokesman Zabihullah Muhajid, who tweeted that the blast had claimed the lives of civilians.
It was not immediately clear how many people were killed or injured in the attack, but the explosion appeared to be targeting senior Taliban leadership.
Reports on social media described a large detonation and emergency services rushing to the scene.
No one has claimed responsibility for the bombing and the Taliban have not yet announced officially who they blame for the attack.
Later on Sunday night, Kabul was rocked by more explosions and sustained gunfire
Taliban spokesman Mujahid said the operation “completely destroyed” an ISIS cell.
“Last night, a special unit of the Mujahideen of the Islamic Emirate carried out an operation against ISIS insurgents in Kabul’s Police District 17. As a result of this operation, which was very decisive and successful, the ISIS center was completely destroyed and all the ISIS members in it were killed,” Mujahid said on Twitter.
A little more than a month since insurgents seized control of Afghanistan, taking control of major cities and installing themselves in the presidential palace in Kabul, the Taliban’s new interim government is facing a range of threats from internal enemies.
In recent days, the Taliban have conducted several operations targeting ISIS-K militants. The group claimed to have killed at least nine ISIS-K members and detained five others in two operations on Friday, targeting ISIS hideouts in the central Afghanistan province of Parwan, according to local Taliban police chief Maulvi Abdul Qadir Haqqani.
Parwan province neighbors Kabul province, with the capital’s Police District 17 — where Sunday’s operation took place — bordering Parwan.
Eyewitnesses told a local journalist that women and children were killed in the operation in Parwan, a claim confirmed by local police chief Haqqani.
CNN’s Nic Robertson in Abu Dhabi contributed reporting.